ESG & Investing
JPMorgan Wraps Up $1 Billion Debt-Swap Deal for El Salvador
- The deal helps El Salvador protect the country’s wetlands
- Global market for debt-for-nature swaps is heating up
El Salvador will generate more than $352 million in savings, which will be used to protect the Rio Lempa river and its surroundings.
Photographer: Marvin Recinos/AFP/Getty ImagesThis article is for subscribers only.
JPMorgan Chase & Co. has wrapped up a $1 billion refinancing deal for El Salvador, equivalent to roughly 14% of the country’s debt, in an arrangement that will help it channel funds toward the conservation of its longest river.
The transaction, which marks JPMorgan’s first foray into the market for debt-for-nature swaps, was arranged together with the US International Development Finance Corporation, according to a statement. Catholic Relief Services, a US-based humanitarian organization, and the Environmental Investment Fund of El Salvador will oversee the conservation component of the deal.